Arcturus Therapeutics Announces First Quarter 2024 Financial Update and Pipeline Progress Commercial manufacture of Kostaive on track for delivery of initial 4 million doses in Q3 Kostaive European Marketing Authorizatio

Therapeutics Announces First Quarter 2024 Financial Update and Pipeline Progress

Commercial manufacture of Kostaive on track

for delivery of initial 4 million doses in Q3

Kostaive European Marketing Authorization

Application approval decision expected Q3

Multiple Kostaive Phase 3 trials further

demonstrate breadth and durability of STARR vaccine platform

ARCT-2138 (LUNAR-FLU) Phase 1 topline immunogenicity

and safety data, anticipated in Q3

ARCT-810 (LUNAR-OTC) Phase 2 and ARCT-032 (LUNAR-CF)

Phase 1b interim data and update to be provided on July 1st

JP Morgan engaged to monetize investment in

Investor conference call at 4:30 p.m. ET today

SAN DIEGO--(BUSINESS WIRE)--May. 8, 2024-- Arcturus

Therapeutics Holdings Inc. (the "Company", "Arcturus", Nasdaq: ARCT), a global messenger RNA medicines company

focused on the development of infectious disease vaccines and opportunities within liver and respiratory rare diseases, today announced

its financial results for the first quarter ended March 31, 2024, and provided corporate updates.

"Arcturus continues to make encouraging

progress in both our vaccine and therapeutics pipeline," said Joseph Payne, President & CEO of Arcturus. "In collaboration

with our global vaccine partner CSL and their partner Meiji Seika Pharma, we are excited to begin the commercialization of Kostaive this

Mr. Payne continued, "We also look forward

to providing meaningful clinical study data updates July 1st, for each of our flagship mRNA therapeutic programs, ARCT-810

(OTC deficiency) and ARCT-032 (CF)."

"I am pleased to announce that we have engaged

JP Morgan to monetize our stake in ARCALIS, our JV manufacturing operation in Japan," stated Andrew Sassine, Chief Financial Officer

of Arcturus Therapeutics. "Additionally, I am pleased to announce we will begin to qualify for commercial milestones under our CSL

collaboration upon commencement of Kostaive revenues in Japan this year. Finally, our cash runway remains strong for at least three years

into the first quarter of fiscal year 2027."

Recent Corporate Highlights

Financial Results for the

three months ended March 31, 2024

Revenues in conjunction

with strategic alliances and collaborations:

Arcturus' primary sources

of revenues were from license fees, consulting and related technology transfer fees, reservation fees and collaborative payments received

from research and development arrangements with pharmaceutical and biotechnology partners. For the three months ended March 31, 2024,

revenues were $38.0 million compared with $80.3 million for the three months ended March 31, 2023. The decrease

was primarily attributable to the CSL agreement as $78.2 million total revenue was recognized during the first quarter of 2023 upon the

achievement of a conditional payment and multiple milestones, compared to $32.4 million total revenue related to CSL during the first

quarter of 2024, resulting in a decrease of $45.8 million. The total decrease was primarily offset by an increase in revenue of $4.9 million

related to the agreement with BARDA.

operating expenses for the three months ended March 31, 2024, were $68.4 million compared with $65.5 million for

the three months ended March 31, 2023.

Research and development

and development expenses consist primarily of external manufacturing costs, in-vivo research studies and clinical trials performed by

contract research organizations, clinical and regulatory consultants, personnel-related expenses, facility-related expenses and laboratory

supplies related to conducting research and development activities. Research and development expenses were $53.6 million for

the three months ended March 31, 2024, compared with $51.8 million in the comparable period last year. The increase in

research and development expenses were primarily driven by the CSL and BARDA programs as well as Arcturus' internal OTC and Cystic

Fibrosis programs. Additionally, investments increased in early stage and discovery technologies, including the initiation of preclinical

research related to its Lyme Disease and Gonorrhea vaccine discovery programs.

General and Administrative

and administrative expenses primarily consist of salaries and related benefits for executive, administrative, legal and accounting functions

and professional service fees for legal and accounting services as well as other general and administrative expenses. General and administrative

expenses were $14.9 million for the three months ended March 31, 2024, compared with $13.8 million in the comparable period

last year. The increase in expenses resulted primarily from increased personnel expenses due to increased salaries, increased travel and

consulting expenses as well as escalated rent expense associated with facilities.

three months ended March 31, 2024, Arcturus reported a net loss of approximately $26.8 million, or ($1.00) per diluted share,

compared with a net income of $50.8 million, or $1.87 per diluted share in the three months ended March 31, 2023.

Cash Position and Balance

cash equivalents and restricted cash were $345.3 million as of March 31, 2024, and $348.9 million on December

31, 2023. Arcturus achieved a total of approximately $420.1 million in upfront payments and milestones from CSL as of March 31, 2024,

and expects to continue to receive future milestone payments from CSL supporting the ongoing development of the COVID and flu programs

and three additional vaccine programs by CSL. The expected cash runway extends at least three years based on the current pipeline and

programs through the first quarter of fiscal year 2027.

Earnings Call: Wednesday,

May 8, 2024 @ 4:30 pm ET

About Arcturus Therapeutics

Founded in 2013 and based in San Diego, California,

Arcturus Therapeutics Holdings Inc. (Nasdaq: ARCT) is a global mRNA medicines and vaccines company with enabling technologies: (i) LUNAR

lipid-mediated delivery, (ii) STARR mRNA Technology (sa-mRNA) and (iii) mRNA drug substance along with drug product manufacturing

expertise. Arcturus developed the first self-amplifying messenger RNA (sa-mRNA) COVID vaccine (Kostaive ) in the world to be approved.

Arcturus has an ongoing global collaboration for innovative mRNA vaccines with CSL Seqirus, and a joint venture in Japan, ARCALIS, focused

on the manufacture of mRNA vaccines and therapeutics. Arcturus' pipeline includes RNA therapeutic candidates to potentially treat

ornithine transcarbamylase deficiency and cystic fibrosis, along with its partnered mRNA vaccine programs for SARS-CoV-2 (COVID-19) and

influenza. Arcturus' versatile RNA therapeutics platforms can be applied toward multiple types of nucleic acid medicines including

messenger RNA, small interfering RNA, circular RNA, antisense RNA, self-amplifying RNA, DNA, and gene editing therapeutics. Arcturus'

technologies are covered by its extensive patent portfolio (over 400 patents and patent applications in the U.S., Europe, Japan, China,

and other countries). For more information, visit www.ArcturusRx.com. In addition, please connect with us on Twitter and LinkedIn.

Forward Looking Statements

This press release contains forward-looking statements

that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform

Act of 1995. Any statements, other than statements of historical fact included in this press release, are forward-looking statements,

including those regarding strategy, future operations, the likelihood of success and continued advancement of the Company's pipeline

(including ARCT-032 and ARCT-810) and partnered programs (including the COVID-19 and flu programs partnered with CSL Seqirus), the likelihood

of delivery of doses of Kostaive (including timing and volume thereof), the anticipated commercialization of Kostaive and the timing thereof,

the likelihood and timing of a European Marketing Authorization application approval decision for Kostaive, the monetization of Arcturus'

interests in ARCALIS JV in Japan, that preclinical or clinical data will be predictive of future clinical results, the likelihood and

timing of clinical study updates (including for ARCT-2138 (LUNAR-FLU), ARCT-032 (LUNAR-CF)), the qualification for commercial milestones

under the CSL collaboration, the continuation and expected recruitment in the Phase 3 pivotal study of ARCT-2303 candidate vaccine containing

the Omicron XBB.1.5 variant, the ongoing recruitment in the ARCT-2138 (LUNAR-FLU) Phase 1 study, the likelihood or timing of collection

of accounts receivables including expected future milestone and other payments from CSL, its current cash position and expected cash burn

and runway, and the impact of general business and economic conditions. Arcturus may not actually achieve the plans, carry out the intentions

or meet the expectations or projections disclosed in any forward-looking statements such as the foregoing and you should not place undue

reliance on such forward-looking statements. These statements are only current predictions or expectations, and are subject to known and

unknown risks, uncertainties, and other factors that may cause our or our industry's actual results, levels of activity, performance

or achievements to be materially different from those anticipated by the forward-looking statements, including those discussed under the

heading "Risk Factors" in Arcturus' most recent Annual Report on Form 10-K, and in subsequent filings with, or submissions

to, the SEC, which are available on the SEC's website at www.sec.gov. Except as otherwise required by law, Arcturus disclaims any

intention or obligation to update or revise any forward-looking statements, which speak only as of the date they were made, whether as